India’s Push for Electric Heavy Vehicles: Crucial for Emissions Reduction and Economic Growth

India is placing a strong emphasis on transitioning heavy vehicles to electric power, recognizing their outsized impact on carbon emissions and the projected growth in their numbers. This was a key focus at the Indian Clean Transportation Summit, organized by the International Council on Clean Transportation (ICCT).

Heavy vehicles, while comprising only 3% of India’s total vehicles, are responsible for 44% of the country’s carbon emissions from transportation. With their numbers expected to quadruple by 2050, according to Niti Aayog, the shift to electric vehicles (EVs) in the freight sector has become a priority for both government regulators and clean air advocates.

The two-day summit brought together government officials, industry stakeholders, civil society members, and experts to discuss

strategies for promoting wider adoption and local manufacturing of EVs, particularly in the heavy-duty segment. Participants emphasized the need for robust financial support and innovative business models to drive this transition.

Hanif Qureshi, additional secretary at the Union Ministry of Heavy Industries, highlighted a major obstacle: the reluctance of big banks to lend money for electric trucks. Currently, only non-banking financial corporations (NBFCs) are offering loans, but at higher interest rates. Qureshi stressed the importance of local manufacturing to reduce costs and meet the ambitious goal of producing 300,000 to 400,000 electric trucks annually.

The urgency of electrifying India’s trucking sector is underscored by the fact that 70% of the country’s freight is transported by road

, a significantly higher percentage compared to the United States (30-40%) and Europe (under 50%).

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Subhendu J Sinha, the adviser at NITI Aayog, outlined government efforts to accelerate EV adoption in the trucking sector. These include rationalizing GST rates to support the supply chain, implementing production-linked incentive (PLI) schemes, and expanding the charging infrastructure. Out of a target of 22,000 charging stations, 17,000 are already operational.

Drew Kodjak, executive director of ICCT, proposed a four-point strategy for scaling up decarbonization efforts:

1. Implementing supply-side regulations
2. Offering consumer incentives
3. Expanding charging infrastructure
4. Promoting local manufacturing to create new jobs

The summit also addressed the development of new charging technologies, with the Bureau of Indian Standards (BIS) introducing equipment capable of both AC and DC charging.

As India continues to grapple with air pollution and climate change concerns, the electrification of heavy vehicles emerges as a critical component of its overall strategy for sustainable transportation. The government’s multifaceted approach, combining regulatory measures, financial incentives, and infrastructure development, aims to overcome the challenges in transitioning to electric heavy vehicles while simultaneously fostering economic growth and job creation in the EV sector.